Wednesday, February 11, 2009
Copper Fox provides an update of Corporate Activities
Calgary, February 11, 2009, Copper Fox Metals Inc. (CUU-TSX-V, CPFXF-S/P) is pleased to provide a Technical and Financial update of Corporate Activities developments.
TECHNICAL UPDATE: Copper Fox announces the assay results for the remaining 30 drill holes from its 53 hole diamond drilling program at Schaft Creek during the 2008 season.
"The Company is pleased with the results from the drilling within the Liard (Main) and Paramount Zones. In the Liard (Main) Zone, drill hole 08CF341 tested an area of the designed pit previously considered to be waste material and extended mineralization eastwards by at least 150 metres. This hole was stopped at a drill-capacity depth of 542.39 metres in mineralization. Drill hole 08CF347 intersected 459.0 metres of mineralization with a copper equivalent grade of 0.50% CuEq and included a 35.05 metre interval that assayed 0.693% copper, 0.022% molybdenum, 0.892 g/t gold and 3.35 g/t silver from 4.05 metres. In the Paramount Zone, the historical higher grades reported by Hecla and Teck and the continuity of mineralization have been confirmed. The results from these diamond drill holes considerably expand the potential size of what already is a world class mineral deposit", says Guillermo Salazar, President and CEO of Copper Fox Metals.
The 2008 drilling program was designed to complete the geotechnical, hydro-geological and pit slope stability study of areas within the proposed 100,000 tonnes per day copper-gold-molybdenum open pit mine at Schaft Creek. This pit was designed by Samuel Engineering, Inc., Knight Pi�sold Ltd. and Moose Mountain Technical Services and is included in the Preliminary Feasibility Study released September 15, 2008. Additional objectives of the drilling were to decrease the spacing between drill holes in areas of the Paramount Zone. The results from this program considerably expand the potential size of the Schaft Creek mineral deposit and represent a major achievement in moving the project towards production.
Fourteen of these holes were drilled within the known limits of the Liard and Paramount ore bodies while sixteen were drilled outside these areas, primarily in what were considered candidate sites for waste and tailings disposal. Two holes extended mineralization beyond the known limits of the deposit. Highlights from this drilling program are contained in Table No.1 below.
Table 1: Highlights of best results reported (metres)
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Hole No From To Interval Cu % Mo % Au g/t Ag g/t
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Liard or
Main Zone
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08CF341 146.40 256.20 109.80 0.267 0.038 0.177 0.73
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And 497.15 542.39 45.24 0.159 0.046 0.065 0.71
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08CF347 4.60 39.65 35.05 0.693 0.022 0.892 3.35
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Paramount
Zone
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08CF342 73.20 223.72 150.52 0.311 0.022 0.397 1.77
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08CF366 9.15 115.90 106.75 0.503 0.037 0.272 1.49
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08CF369 12.20 334.67 322.47 0.292 0.026 0.361 1.71
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The results from the 2008 drilling season are presented in detail on Table No 2. All drilling results will be posted in CUU's website and will be included in the corebox.net database, also on display in the website.
Table 2: Significant intervals (metres)
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Weigh- Weigh- Weigh- Weigh-
ted ted ted ted
Avg Avg Avg Avg CU_Eq
Hole No. From To Interval Cu_% Mo_% Ag_g/t Au_g/t %
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Paramount Zone
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08CF338 158.60 204.35 45.75 0.370 0.026 0.064 0.50 0.667
combined 134.20 204.35 70.15 0.364 0.027 0.066 0.33 0.674
219.60 225.70 6.10 0.206 0.013 0.110 0.85 0.385
234.85 240.95 6.10 0.510 0.022 0.085 0.80 0.778
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08CF342 24.38 36.60 12.22 0.187 0.013 0.042 n/a 0.344
73.20 223.72 150.52 0.311 0.022 0.397 1.77 0.680
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08CF348 30.50 33.55 3.05 0.100 0.017 0.210 1.00 0.354
42.70 160.93 118.23 0.195 0.037 0.252 1.78 0.680
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08CF351 27.45 70.15 42.70 0.239 0.027 0.081 0.28 0.557
88.45 231.80 143.35 0.351 0.030 0.309 2.36 0.783
237.90 247.05 9.15 0.253 0.002 0.080 n/a 0.294
259.25 268.40 9.15 0.280 0.001 0.060 n/a 0.312
283.65 286.70 3.05 0.326 0.002 0.270 n/a 0.430
295.85 305.00 9.15 0.303 0.003 0.120 n/a 0.375
311.10 316.68 5.58 0.316 0.002 0.184 0.44 0.402
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08CF366 5.49 273.71 268.22 0.300 0.025 0.170 0.60 0.628
Including the following
9.15 115.90 106.75 0.503 0.037 0.272 1.49 0.987
122.00 186.05 64.05 0.213 0.029 0.128 n/a 0.567
192.15 198.25 6.10 0.244 0.009 0.045 n/a 0.355
207.40 213.50 6.10 0.148 0.016 0.370 n/a 0.437
225.70 253.15 27.45 0.200 0.020 0.146 0.11 0.457
262.30 273.71 11.41 0.187 0.011 0.070 n/a 0.328
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08CF369 12.20 334.67 322.47 0.292 0.026 0.361 1.71 0.693
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Main Zone
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08CF340A 5.79 50.29 44.50 0.308 0.024 0.212 1.00 0.637
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08CF341 85.40 88.45 3.05 0.006 0.001 1.000 0.00 0.338
146.40 256.20 109.80 0.267 0.038 0.177 0.73 0.732
283.65 289.75 6.10 0.208 0.008 0.085 0.85 0.321
298.90 329.40 30.50 0.233 0.008 0.091 0.62 0.347
347.70 387.35 39.65 0.167 0.015 0.048 0.46 0.344
411.75 436.15 24.40 0.178 0.028 0.049 0.83 0.494
448.35 472.75 24.40 0.193 0.012 0.071 0.55 0.351
497.15 542.39 45.24 0.159 0.046 0.065 0.71 0.676
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08CF346 21.35 253.15 231.80 0.374 0.030 0.217 1.16 0.768
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08CF347 4.60 463.60 459.00 0.287 0.012 0.283 0.44 0.508
Including the following
08CF347 4.60 39.65 35.05 0.693 0.022 0.892 3.35 1.238
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Proposed Plant Site and Tailings Storage Facility Drill HolesTwo drill holes, 25.91m and 27.43m in length, were drilled at the Proposed Plant Site. The other 14 holes were drilled at the proposed Tailings Storage Facility about seven kilometres to the north of the open pit area and are 28.96m to 92.66m in length. None of these drill holes contain significant intersections.
Quantitative Assessment and Quality Control Results for assay standards used are within acceptable ranges for copper, molybdenum and gold. Values for silver in assay standards are either well within acceptable ranges or are less than detection.
For consistency in reporting this season's work, all copper equivalent values are calculated using the three-year trailing averages for the metal prices provided to Copper Fox Metals as of August 2008 (See Table No. 3) and the drill core assay grades.
Table 3: Metal Prices for Copper Equivalent Calculation
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Data Inputs for Copper Equivalent
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Metal Copper Molybdenum Gold Silver
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Price US$ $3.12 $33.00 $692.85 $13.09
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per unit lb lb oz oz
Grade % % g/t g/t
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FINANCIAL UPDATE:The Company is diligently pursuing various areas of financing to eliminate a working capital deficiency of $3,000,000 as a result of the combination of unexpected cost overruns in its 2008 camp operation at Schaft Creek and more importantly the collapse of the financial markets in the last quarter of 2008 that prevented the Company from completing planned equity financing. Currently The Company is in advanced discussions with a number of parties, domestically and internationally, to secure $4,000,000 in financing to restore its working capital and continue to advance the Schaft Creek project.
About Copper FoxCopper Fox is a Canadian-based mining company listed on the TSX-Venture Exchange (CUU). The Company's activities are focused exclusively on the Schaft Creek mineral property, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Copper Fox holds the Schaft Creek property pursuant to an option agreement with Teck Cominco Limited ("Teck) and has earned a direct 70% interest in the Schaft Creek Mineral Deposit. The Company may acquire up to a 93.4% direct and indirect interest in the property, subject to certain back-in rights to Teck.
Schaft Creek comprises 20,932 hectares situated in northwest British Columbia, Canada at 57� 21' N latitude and 130� 59' W longitude on the eastern slopes of the Coastal Mountain ranges. Schaft Creek is situated between the highway and the glaciers in the area, and benefits from a significantly lower average rain and snowfall compared to the Pacific (west) side of these same ranges. The Company released the results of its preliminary feasibility study on September 15, 2008. The PFS was based on a 100,000 tonne per day open pit mine with a minable reserve of 812 million tonnes. The report indicated Schaft Creek could produce 4.762 billion pounds of Copper, 255.1 million pounds of molybdenum, 4.493 million ounces of gold and 32.480 million ounces of silver over a 22.6 year mine life with a pretax NPV of $2.764 billion discounted at 8%. The Company plans to proceed with the completion of a full feasibility study on this project.
For additional information contact: Investor inquiries: Jason Shepherd, Phoenix Communications Group
Tel: 1-866-913-1910, E-mail:
investor@copperfoxmetals.com On behalf of the Board of Directors
Guillermo Salazar S, President and CEO
The TSX Venture Exchange has not reviewed the contents of this news release and accepts no responsibility for the adequacy or the accuracy thereof.
Cautionary Note Regarding Forward-Looking InformationThis news release includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: fluctuations in copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.
You can also view this News Release on our website at:
http://www.copperfoxmetals.com/s/NewsReleases.asp?ReportID=337892